ZF's 2025 Profit and Cash Flow Exceed Expectations Amid Strategic Restructuring

[Financial Performance] ZF reported an adjusted EBIT of EUR 17 billion for 2025, with its profit margin rising to 4.5%, and free cash flow surging to EUR 14 billion.

Core Strategic Moves: Strategic Focus Unlocks Long-Term Value

ZF is accelerating its business restructuring, selling its ADAS business to Harman at an estimated valuation of EUR 15 billion (pending regulatory approval), operating its wind power business independently, and terminating certain underperforming electric drive projects ahead of schedule. The company reduced its global workforce by 5% year-over-year to optimize its cost structure.

Key Metrics: Solid Organic Growth and Significantly Reduced Debt

Sales reached EUR 388 billion in 2025, reflecting organic growth of 0.6% after adjusting for acquisitions and currency effects. Net debt declined to EUR 102 billion, successfully reducing financial liabilities by EUR 2.5 billion. A EUR 10 billion, six-year bond issued in February 2026 received six times oversubscription, demonstrating strong confidence from capital markets.